The last quarter of the year will leave victims affected by the slowdown in the economy and the rise in prices among companies, workers and households themselves, increasingly pressured by galloping inflation that has been above 10% for three months and is expected to close the whole of the year at 8%. Given this situation and with an average increase in production costs for companies of 23% in the last year, to which is added the rise in labor costs due to the increase in the SMI and contributions, the Association of Self-Employed Workers (ATA) and small businesses launch an alert message with up to seven specific measures that demand the Government of Pedro Sánchez.
Precisely, this discouragement due to the poor prospects appears confirmed in the latest business confidence survey prepared by ManpowerGroup. The hiring intentions of Spanish companies for the last quarter of 2022 suffer a notable slowdown after a year with record growth. Specifically, net forecasts for the last three months of the year stand at 2% compared to 21% in the previous quarter and 33% in the same period of the previous year.
“The directors foresee that the employment market will have an almost flat behavior due to the uncertain panorama that is drawn by the price of energy, inflation, the bottlenecks in the supply of some raw materials and with the invasion of Ukraine as a backdrop. background«, point out the experts of the human resources company.
Seven relief measures
- Deflate the IRPF rate in the different sections. It means, in practice, adapting the income tax to the advance of inflation. In other words, adapt the bracket and the rate applied so that the upward wage variation that is being experienced by the CPI does not in turn result in greater contributions to the public coffers. Thus giving liquidity to taxpayers.
- Reduce contributions. Entrepreneurs claim to reduce the withholdings of self-employed and professionals from 15% to 10%. And also lower payments on account by the self-employed and companies from 20% to 15%.
- Lower the electricity and gas bill. Faced with the incessant escalation of energy prices, there is a demand to reduce VAT on gas and electricity bills from 21% to 5% to provide more liquidity to businesses, despite the fact that this expense is already deductible by the companies and freelancers.
- Bankruptcy moratorium. After the end of the grace period in June to start the return of the ICO credits of the pandemic, it is requested to open a new period to request a moratorium on the returns of publicly guaranteed credits that were requested during the Covid health crisis.
- Adaptation of public contracts. The self-employed demand that self-employed workers who have contracts with public administrations adjust prices to the increases in labor costs in recent years. And they remember that the SMI has already risen 35% during the Sánchez term.
- Reduce VAT on food. With the last occurrence of the Government to cap the prices of basic foods, and that borders on the illegality of jurisdiction, although it has finally remained in a media umbrella of pressure on distributors to prepare packages of commercial offers, from ATA they demand a reduction to 0% of VAT on basic foods in order to reduce the cost of the shopping basket.